Riverside Capital sells top performing fitness centre in Derby to return 1.3x equity to investors

Riverside Capital has this month completed on the sale of a fitness centre in Derby for £9.85 million.

The sale represents a net initial yield of 5.14%.

The property, let to Nuffield Health on a 25 year lease, was sold to Knight Frank Investment Management.

The sale provided investors with an IRR of 8.47%  over the 3.5 year hold period and a return on equity of 30.16%.

“Occupied by Virgin Active at the time of acquisition, we acquired this property for our investors in 2015 with the opportunity of a lease restructure to provide capital growth. Assigning the lease to Nuffield improved the tenant covenant whilst also ensuring income levels were maintained. This is a good example of how a lease restructure can provide value add and capital appreciation” Ashley Wilcox, Investment Director.

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